Getting the home loan is no easier

Getting a home loan in India can seem a little complex from now onwards. Reserve bank of India has released strict directives for all the banks to check whether a housing loan is being sought for an authorized structure. Also, the responsibility to ensure that the construction is being carried out in accordance with the sanctioned building plan will fall with these banks.

As a follow up of the orders from the High Court, banks are advised to comply promptly with instructions in this regard without failing and with the immediate effect when considering the applications for home loans.

These given directives vary according to the type of application. Incase of the loan application for buying constructed property, applicant will need to submit a declaration form to the bank stating that the construction of the built up property has been carried out in accord with the sanctioned plan.

Likewise, for housing loan application for building construction, banks are required to get a copy of the sanctioned plan from the knowledgeable authority in the name of the person applying for such credit facility. Other legal formalities include a signed affidavit cum undertaking by the borrower according to which the borrower shall not violate the sanctioned plan.